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Musk Warns Twitter Bankruptcy Possible as Senior Executives Exit

  • ‘Chief Twit’ warns employees of 80-hour weeks, lost perks
  • Investors were already offering distressed prices for loans
Bloomberg business news
Elon Musk says a Twitter bankruptcy is possible. Source: Bloomberg
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Elon Musk, in his first address to Twitter Inc. employees since purchasing the company for $44 billion, said that bankruptcy was a possibility if it doesn’t start generating more cash, according to people familiar with the matter.

The warning came amid a tumultuous start to Musk’s reign at the social media company -- a two-week period in which he has fired half of Twitter’s staff, ushered out most of the top executives and ordered the remaining employees to stop working from home. One executive who until Thursday had emerged as part of Musk’s new leadership team, Yoel Roth, departed, people familiar with the situation said. Another, Robin Wheeler, also resigned -- but Musk persuaded her to stay on, said some of the people, who requested anonymity to protect personal and professional relationships.